USD/CAD creeping higher with eyes for 1.32 handle

Currently, USD/CAD is trading at 1.3180, down -0.05% on the day, having posted a daily high at 1.3189 and low at 1.3172.

We had a US holiday today and much of the tone was risk -off, favouring the greenback to some degree after yesterdays crash in the pound again on the open of early Asia in thin trade.

Market wrap: risk aversion increasing, watching sterling - Westpac

We look to Wednesday’s Bank of Canada policy decision for domestic events for CAD, that will be accompanied with a statement, and MPR forecast update. "We remain CAD bears on the basis of relative central bank policy and look to CAD weakness into and through Wednesday’s BoC...OIS are still pricing roughly 5bpts of tightening over the next 12 months, leaving CAD vulnerable to weakness in the event of a moderation," explained analysts at Scotiabank, adding, "We hold a bearish CAD forecast looking to 0.71 for end-Q2."

US dollar ends higher, consolidating around 101.50

USD/CAD levels

USD/CAD has been climbing higher and away from the support of the 200 day MA support at 1.3146. "We  anticipate gains through 1.3180 toward the mid-1.32s," offered analysts at Scotiabank.

Spot is presently trading at 1.3180, and next resistance can be seen at 1.3187 (Daily Open), 1.3189 (Daily High), 1.3190 (Yesterday's High), 1.3194 (Daily Classic R2) and 1.3212 (Hourly 200 SMA). Support below can be found at 1.3172 (Daily Low), 1.3165 (Hourly 100 SMA), 1.3162 (Daily Classic R1), 1.3153 (Hourly 20 EMA) and 1.3151 (Weekly Classic PP).